Eduardo Schwartz

Professor of Finance; California Chair in Real Estate and Land Economics; Area Chair

Phone: (310) 825-2873


An expert in various dimensions of asset and securities pricing, Dr. Schwartz’s recent research has focused on pricing Internet companies, interest rate models, asset allocation issues, evaluating natural resource investments, the stochastic behavior of commodity prices and valuing patent-protected R&D projects. His collected works include more than 80 articles in finance and economic journals, two monographs, and a large number of monograph chapters, conference proceedings, and special reports.

Dr. Schwartz is among the first researchers to develop the real options method of pricing investments under uncertainty.  He is co-editor, with Lenos Trigeorgis of the University of Cyprus, on the book, Real Options and Investment Under Uncertainty (MIT, 2001), a compilation of recent papers and classic research in the field.  His most recent research applies real options to pricing values in the pharmaceutical industry, specifically focusing on patents and R&D projects.

He is the winner of a number of awards for both teaching excellence and for the quality of his published work. He has served as associate editor for more than a dozen journals, including Journal of Finance, Journal of Financial Economics and Journal of Financial and Quantitative Analysis. He is a former president of the Western Finance Association and the American Finance Association. He is a fellow of the American Finance Association and the Financial Management Association International. He is also a research associate of the National Bureau of Economic Research.

Dr. Schwartz was awarded a Doctor Honoris Causa by the University of Alicante in Spain and by the Copenhagen Business School.  He also received the 2000 Graham and Dodd Award for his paper, “Rational Pricing of Internet Companies,” published in the Financial Analysts Journal.  He has also been a consultant to governmental agencies, banks, investment banks and industrial corporations.


Ph.D. Finance, 1975, University of British Columbia
M.Sc. Business Administration, 1973, University of British Columbia
B.Eng. Industrial Engineering, 1963, University of Chile


Asset Pricing, Bond Markets, Commodities, Future Markets, Natural Resources, Oil and Gas Industry, Latin America, Derivatives, Fixed-Income Securities, Mortgage-Backed Securities
  • Sergio Ortobelli, Isabella Huber, and Eduardo S. Schwartz. (2002). Portfolio selection with stable distributed returns. Mathematical Methods of Operations Research, [ Link ]
  • Julio J. Lucia, and Eduardo S. Schwartz. (2002). Electricity Prices and Power Derivatives: Evidence from the Nordic Power Exchange. Review of Derivatives Research, [ Link ]
  • Yesim Tokat, and Eduardo S. Schwartz. (2002). The impact of fat tailed returns on asset allocation. Mathematical Methods of Operations Research, [ Link ]
  • Francis A. Longstaff, Pedro Santa-Clara, and Eduardo S. Schwartz. (2001). The Relative Valuation of Interest Rate Caps and Swaptions: Theory and Empirical Evidence. Journal of Finance,